Can booty-lifting jeans save America’s retailers?

November 12, 2015 - fall Denim

Macy’s (M) reported unsatisfactory third-quarter gain this morning and warned on full-year earnings. As a result, shares of a batch tumbled some-more than 12%. The sell zone (XRT) also forsaken into a red on a news.

Macy’s CEO and authority Terry Lundgren told investors that a hulk tradesman missed on gain since of unseasonably comfortable continue in a Northeast and a stalemate in general tourists in his shops.

Other vital dialect stores, including Kohl’s (KSS) and J.C. Penney (JCP), also gifted a unemployment in share price. “The sell attention is going by a tough period,” Lundgren pronounced during his gain call. “We seem to knowledge something like this each 5 to 7 years.”

A new news from BGC Financial showed that sell salaries and salary are flourishing during a faster gait than a private zone in total. Growing salaries benefaction nonetheless another headwind that brick-and-mortar stores face opposite a flourishing strength of e-commerce.

Still, smaller teen-targeted sell brands continue to dominate. American Eagle (AEO) associated rough third-quarter gain that surfaced analysts’ expectations. Jessica Bornn, comparison researcher during Merchant Forecaster, thinks that this is since they’re means to specialize and 0 in on trends.

“For a final 3 years a consumer was unequivocally focused on price,” she says. “Now we’re in a clever conform trend. It’s this whole folkloric independent kind of Woodstocky look.”

Bornn also records that women are shopping a lot of denim that helps figure their backsides. “Everyone unequivocally likes a approach yoga pants make their rears look—so this denim has fortifying record and lycra in them. Some retailers are even referring to them as a ‘Yoga Jean’,” she says.

While “athleisure” is a word of a impulse (literally, it was only combined to a Oxford English Dictionary), there’s been a lapse to this new soothing denim. Janet Kloppenburg, boss of JJK Research, has pronounced she expects denim to redeem from a 8% dump in sales in 2014. “I’m confident that a difficulty has stabilized, as normal section sell prices have, and that we competence see a unequivocally low single-digit boost by a finish of a year,” she told WWD.

Replay Jeans launched a high-end ad campaign this tumble display supermodel Irina Shayk behaving yoga in their “Hyperskin” line of denim. Second Jeans is also offered a yoga jean during Nordstrom‘s for $125.

Men are also removing in on a action. American Eagle expelled a “Fall Flex Jean,” done paritally from recycled coffee beans. The association says a jeans offer “revolutionary widen technology.”

While this denim appeals to consumers of all ages, it’s unequivocally a youth retailers who have picked adult on a trend, says Bornn. She says brands like Guess (GES), Express (EXPR)  Bebe (BEBE) and American Eagle are formulation a large pull on these jeans for tumble and a holidays. 

Handbags, valuables and accessories are now holding a backseat, according to Bornn. That’s bad news for high-end retailers like Michael Kors (KORS) who rest on purse and other lower-priced accessories to addition a sales of their some-more costly garments.

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